The EU has got it all wrong. The severe austerity measures imposed on Greece, Spain and Portugal were a huge mistake. Its a vicious circle. Growth must be the only answer and you can't get that with major austerity. If Greece defaults it would be a matter of time before Portugal and Spain follows. That would then led to the removal of A Merkel.
I can't see the Spanish being able to take more financial punishment in order to save the bankers in Berlin, so its inevitable that Spain will need a big bailout and since there isn't any funding around to finance this the Euro will collapse. That is my prediction but I am hoping that I am wrong.